The UK government is in talks with the United States over the prospect of a diesel export ban, as London braces for further pressure on already record-high fuel prices, according to comments from Defence Secretary John Healey and industry data released on Monday.
Speaking to the BBC, Mr Healey said ministers were discussing the possibility with the US government and had begun preparing for a scenario in which exports were restricted. He said Britain had its own strategic stocks...
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and was planning for contingencies if needed. At the Labour Party conference in Liverpool, he said the UK was working very closely with Washington to try to resolve the issue, adding that diplomacy and an end to the war in Iran would be the answer.
The warning comes as diesel prices have surged across Europe, driven by disruptions to global supply caused by the conflict in Ukraine and renewed turmoil in the Middle East. The RAC said the average price of diesel in the UK rose to 199.33p a litre on Monday, slightly above the previous peak set in June 2022, when prices hit 199.09p. Other industry trackers put the figure at 199.18p a litre, underlining that motorists are now paying close to £2 a litre on average.
For a typical 55-litre family car, that means filling up now costs more than £109, about £30 more than at the start of the US-Iran war, according to Auto Express. The price rise has revived concerns about inflation at a time when households are still under strain from elevated living costs.
US President Donald Trump has said he is seriously considering banning exports of American diesel, a move that analysts say could reshape fuel flows well beyond the US market. S&P Global warned that while such a step might initially ease domestic supply in the United States, it could also disrupt refining operations and send shockwaves through international diesel markets.
Europe is particularly exposed. The Guardian reported that the European Union has raised concerns that any US export ban would hurt both sides, given the bloc’s greater dependence on American diesel since the loss of Russian supplies. Britain is also vulnerable: around a third of its diesel imports come from the United States, meaning any restriction could push prices even higher.
The debate comes against the backdrop of wider strain in the refining system. Diesel is proving especially sensitive because it depends on both crude availability and refinery output, and shortages can be magnified quickly when geopolitical tensions threaten shipping routes or production.
Officials in London appear to be hoping diplomacy can avert the worst outcomes, but with fuel costs already at historic highs, the political and economic pressure on governments on both sides of the Atlantic is likely to intensify if Washington follows through on the threat.
Source: Noah Wire Services
